Homework Answers
Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate
1.Present value=1.05*800[1-(1.05)^-12]/0.05
=800*9.306414218
=7445.13(Approx).
2.Present value=1.08*800[1-(1.08)^-12]/0.08
=800*8.138964258
=6511.17(Approx).
Add Answer to:
6–30. (Calculating the present value of an annuity due) What will be the present value of...
Q 42,43,44,45,47 CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value...
Q
42,43,44,45,47
CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value of a perpetuity) (Related to Checkpoint page 206) What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent C. A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent...
Problem 5-22 (similar to) (Present value of an annuity) What is the present value of the...
Problem 5-22 (similar to) (Present value of an annuity) What is the present value of the following annuities? a. $1,600 a year for 8 years discounted back to the present at 10 percent. b. $80 a year for 5 years discounted back to the present at 7 percent. c. $260 a year for 11 years discounted back to the present at 12 percent d. $440 a year for 4 years discounted back to the present at 5 percent. a. What...
6-2. (Caloulating the present value of an ordinary annuity) (Related to Checkpoint page 199) Calculate the...
6-2. (Caloulating the present value of an ordinary annuity) (Related to Checkpoint page 199) Calculate the present value of the following annuities. a. £350 a year for 12 years discounted back to the present at 7 percent. b. €260 a year for 5 years discounted back to the present at 8 percent. c. $3,000 a year for 8 years discounted back to the present at 6 percent. d. £60 a year for 3 years discounted back to the present at...
5. What is the present value of an annuity due with 5 annual payments of $100,...
5. What is the present value of an annuity due with 5 annual payments of $100, evaluated at a 15 percent interest rate? 6. What is the future value at the end of the 5th year of an annuity due with 5 annual payments of $300, evaluated at a 10 percent interest rate 7. You plan to save $10,000 at the end of every year for 30 years and then retire. Given a 10% rate of interest, what will be...
question from 1 through 6 • value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an or...
question from 1 through 6
• value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an ordinary annuity Calculate the future valu edback the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10...
Determine the present value of an annuity due of $1,000 per month for 15 years discounted...
Determine the present value of an annuity due of $1,000 per month for 15 years discounted back to present at 12 percent compounded monthly. What would be the present value if it were a regular annuity?
(Present value of an ordinary annuity) What is the present value of $3,500 per year for...
(Present value of an ordinary annuity) What is the present value of $3,500 per year for 10 years discounted back to the present at 11 percent? The present value of $3,500 per year for 10 years discounted back to the present at 11 percent is $ (Round to the nearest cent.)
(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of...
(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of $3,500 per year for 9 years discounted back to the present at 9 percent? The present value of $3,500 per year for 9 years discounted back to the present at 9 percent is $ (Round to the nearest cent.)
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary,...
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value
e. What is an annuity due? How does this differ from an ordinary annuity? f. What...
e. What is an annuity due? How does this differ from an ordinary annuity? f. What is the present value of an ordinary annuity of $2 comma 6002,600 per year for 2525 years discounted back to the present at 1111 percent? What would be the present value if it were an annuity due? g. What is the future value of an ordinary annuity of $2 comma 6002,600 per year for 2525 years compounded at 1111 percent? What would be the...
Q
42,43,44,45,47
CHAPTER 6 The Time Value of Money 219 Perpetulties 6-42. Calculating the present value of a perpetuity) (Related to Checkpoint page 206) What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent C. A $100 perpetuity discounted back to the present at 9 percent d. A $95 perpetuity discounted back to the present at 5 percent...
Problem 5-22 (similar to) (Present value of an annuity) What is the present value of the following annuities? a. $1,600 a year for 8 years discounted back to the present at 10 percent. b. $80 a year for 5 years discounted back to the present at 7 percent. c. $260 a year for 11 years discounted back to the present at 12 percent d. $440 a year for 4 years discounted back to the present at 5 percent. a. What...
6-2. (Caloulating the present value of an ordinary annuity) (Related to Checkpoint page 199) Calculate the present value of the following annuities. a. £350 a year for 12 years discounted back to the present at 7 percent. b. €260 a year for 5 years discounted back to the present at 8 percent. c. $3,000 a year for 8 years discounted back to the present at 6 percent. d. £60 a year for 3 years discounted back to the present at...
5. What is the present value of an annuity due with 5 annual payments of $100, evaluated at a 15 percent interest rate? 6. What is the future value at the end of the 5th year of an annuity due with 5 annual payments of $300, evaluated at a 10 percent interest rate 7. You plan to save $10,000 at the end of every year for 30 years and then retire. Given a 10% rate of interest, what will be...
question from 1 through 6
• value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an ordinary annuity Calculate the future valu edback the following streams of payments. a. £430 a year for 12 years compounded annually at 6 percent. b. €56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. £120 a year for 3 years compounded annually at 10...
(Related to Checkpoint 6.2) (Present value of an ordinary annuity) What is the present value of $3,500 per year for 9 years discounted back to the present at 9 percent? The present value of $3,500 per year for 9 years discounted back to the present at 9 percent is $ (Round to the nearest cent.)
Problem 5-12 Present Value of an Annuity Due (LG5-6) If the present value of an ordinary, 8-year annuity is $8,900 and interest rates are 10.0 percent, what's the present value of the same annuity due? (Round your answer to 2 decimal places.) Present value
Most questions answered within 3 hours.
-
Living in a group could bring several disadvantages to an
individual. What are some of the...
asked 1 minute ago -
Complete and balance the following reactions. In case of no
reaction occurring write NR.
Mix #1:...
asked 7 minutes ago -
If an economy consumes 75% of any increase in income, then an
increase in autonomous investment...
asked 10 minutes ago -
A shotputter throws the shot with an initial speed of 15.8 m/s
at a 38.0 ∘...
asked 26 minutes ago -
Debra and Merina sell electronic equipment and supplies through
their partnership. They wish to expand their...
asked 27 minutes ago -
How does a linear regression allow you to better estimate
trends, costs, and other factors in...
asked 35 minutes ago -
1. (15%) Describe the difference between a pull (Kanban), push
and CONWIP production systems.
asked 31 minutes ago -
QUESTION 5
The total area under the Z distribution curve is equal to:
a.
10
b....
asked 40 minutes ago -
Using Python
The variables x and y refer to numbers. Write a code segment
that prompts...
asked 54 minutes ago -
If
the coefficient of static friction between a box and the floor is
0.35 with what...
asked 56 minutes ago -
A die is designed to punch holes with a radius of 1.08 10-2 m in
a...
asked 1 hour ago -
government can increase import through
a. export subsidies
b. tax breaks
c. increase import tax
d....
asked 1 hour ago